Bitcoin Price (BTC) Recovery Remains Capped, Sell Near $9K?
Bitcoin price is currently correcting higher from the new weekly low of $8,422. BTC to USD is likely to face a strong selling interest near the $8,975 and $9,000 levels.
Key Takeaways: BTC/USD
- Bitcoin price is slowly correcting higher and trading above the $8,640 level against the US Dollar.
- BTC/USD is facing hurdles near $8,760 and a major bearish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum is recovering, but it is likely to face sellers near $235.00 and $236.00.
Bitcoin Price Analysis
This week, there was a strong downside reaction in bitcoin price below the $9,220 and $9,000 support levels. Moreover, BTC to USD declined steadily below the $8,750 and $8,640 levels.
Looking at the 2-hours chart, bitcoin even declined below the $8,500 level and settled well below the 50 simple moving average (2-hours, purple). Finally, the price spiked below $8,450 and traded to a new weekly low at $8,422.
It is currently correcting higher and trading above the $8,640 level. There was a break above the 50% Fib retracement level of the recent decline from $8,975 to $8,422.
It seems like bitcoin is currently facing hurdles near $8,760 and a major bearish trend line on the 2-hours chart. The trend line is close to the 61.8% Fib retracement level of the recent decline from $8,975 to $8,422.
Above the trend line, the next major resistance is near the $8,835 and $8,975 levels. Besides, the 50 simple moving average (2-hours, purple) is positioned near the $8,975 and $9,000 levels.
Therefore, a clear break above the $8,975 and $9,000 levels is must for more upsides in the near term. The next major hurdle for the bulls is seen near the $9,220 level.
Conversely, bitcoin price could might fail to surpass the $8,835 and $8,975 resistance levels. In the mentioned case, the price could resume its decline and trade below the $8,500 support area. If the bears remain in action in the coming sessions, there is a risk of a larger decline below $8,422. The next key support is near the $8,240 level.